What must be clearly indicated in a buyer agency agreement in South Dakota?

In South Dakota, a buyer agency agreement must clearly indicate the type of representation that the agent will provide to the buyer. This is crucial because it establishes the relationship between the buyer and the agent, clarifying whether the agent represents the buyer exclusively, acts as a dual agent, or has any other representation arrangement. By defining the type of representation, the agreement helps set clear expectations for the buyer regarding the services they will receive, their obligations, and the confidentiality of information shared.

Understanding the type of representation is vital as it directly impacts the buyer's rights and the agent's duties. For instance, exclusive representation means that the agent is fully committed to the buyer's interests, whereas dual agency involves a shared representation, which may limit the agent's ability to advocate for one party over the other.

Although other factors, such as the duration of the agreement, terms of financing, or the name of the lender, are important in a real estate transaction, they do not define the fundamental nature of the relationship and representation that is crucial for protecting the buyer's interests. Hence, the clarity around the type of representation is a key aspect that must be included in the agreement.